e10vq
United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2010
Or
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________________________________ to ______________________________________
Commission File Number: 001-11638
United American Healthcare Corporation
(Exact name of registrant as specified in its charter)
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Michigan
(State or other jurisdiction of
incorporation or organization)
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38-2526913
(I.R.S. Employer Identification No.) |
300 River Place, Suite 4950
Detroit, Michigan 48207
(Address of principal executive offices) (Zip code)
None
(Former
name, former address and former fiscal year, if changed since last
report)
Registrants telephone number, including area code: (313) 393-4571
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files).
Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
(Check one):
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o
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Small reporting company þ |
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(Do not check if a smaller reporting company) |
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes o No þ.
The number of outstanding shares of registrants common stock as of May 10, 2010 is 8,164,117.
United American Healthcare Corporation
Form 10-Q
Table of Contents
1
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
United American Healthcare Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
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March 31, 2010 |
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June 30, 2009 |
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(Unaudited) |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
9,416 |
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$ |
13,100 |
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Marketable securities |
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4,475 |
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Accounts receivable State of Tennessee, net |
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13 |
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39 |
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Other receivables |
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83 |
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1,419 |
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Prepaid expenses and other |
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281 |
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215 |
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Total current assets |
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9,793 |
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19,248 |
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Property and equipment, net |
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14 |
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134 |
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Marketable securities restricted |
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2,370 |
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2,370 |
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Other assets |
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486 |
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486 |
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Total assets |
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$ |
12,663 |
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$ |
22,238 |
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Liabilities and Shareholders Equity |
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Current liabilities |
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Medical claims payable |
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$ |
360 |
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$ |
2,160 |
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Accounts payable and accrued expenses |
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712 |
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1,228 |
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Accrual for legal settlement |
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3,250 |
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Accrued compensation and related benefits |
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292 |
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388 |
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Other current liabilities |
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48 |
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57 |
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Total current liabilities |
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1,412 |
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7,083 |
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Total liabilities |
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1,412 |
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7,083 |
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Commitments and contingencies |
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Shareholders equity |
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Preferred stock, 5,000,000 shares authorized; none issued |
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Common stock, no par, 15,000,000 shares authorized
8,164,117 and 8,137,903 issued and outstanding at March
31, 2010 and June 30, 2009, respectively |
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17,711 |
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17,684 |
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Additional paid in capital stock options |
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1,660 |
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1,480 |
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Additional paid in capital warrants |
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444 |
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444 |
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Accumulated deficit |
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(8,535 |
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(4,444 |
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Accumulated other comprehensive loss, net of tax |
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(29 |
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(9 |
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Total shareholders equity |
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11,251 |
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15,155 |
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Total liabilities and shareholders equity |
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$ |
12,663 |
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$ |
22,238 |
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See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
2
United American Healthcare Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except per share data)
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Three Months Ended |
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Nine Months Ended |
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March 31, |
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March 31, |
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2010 |
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2009 |
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2010 |
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2009 |
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Revenues |
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Fixed administrative fees |
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$ |
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$ |
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$ |
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$ |
4,596 |
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Variable administrative fees |
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345 |
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944 |
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Medical premiums |
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14 |
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2,612 |
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3,130 |
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7,869 |
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Total revenues |
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14 |
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2,612 |
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3,475 |
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13,409 |
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Expenses |
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Medical
expenses (reduction) |
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(277 |
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2,651 |
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2,752 |
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7,441 |
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Marketing, general and administrative |
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1,681 |
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3,094 |
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4,799 |
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10,425 |
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Depreciation and amortization |
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40 |
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32 |
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120 |
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149 |
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Loss on disposal of fixed assets |
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1 |
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136 |
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Total expenses |
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1,444 |
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5,778 |
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7,671 |
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18,151 |
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Operating loss |
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(1,430 |
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(3,166 |
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(4,196 |
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(4,742 |
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Interest and other income |
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29 |
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102 |
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105 |
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584 |
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Loss before income tax |
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(1,401 |
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(3,064 |
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(4,091 |
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(4,158 |
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Income tax expense (benefit) |
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(40 |
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40 |
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Net loss |
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$ |
(1,401 |
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$ |
(3,024 |
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$ |
(4,091 |
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$ |
(4,198 |
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Net loss per common share basic and diluted |
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Net loss per common share |
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$ |
(0.17 |
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$ |
(0.35 |
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$ |
(0.50 |
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$ |
(0.48 |
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Weighted average shares outstanding |
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8,149 |
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8,565 |
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8,142 |
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8,677 |
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See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
3
United American Healthcare Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in thousands)
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Nine Months Ended |
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March 31, |
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2010 |
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2009 |
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Operating activities |
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Net loss |
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$ |
(4,091 |
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$ |
(4,198 |
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Adjustments to reconcile net loss to net cash
used in operating activities: |
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Depreciation and amortization |
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120 |
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149 |
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Asset write-off |
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421 |
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Loss on disposal of fixed assets |
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136 |
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Stock-based compensation |
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180 |
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259 |
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Payment of legal settlement |
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(3,250 |
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Stock awards |
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27 |
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108 |
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Net changes in other operating assets and liabilities |
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(1,125 |
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(474 |
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Net cash used in operating activities |
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(8,139 |
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(3,599 |
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Investing activities |
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Proceeds from sale of marketable securities |
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6,879 |
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28,840 |
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Purchase of marketable securities |
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(2,424 |
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(23,972 |
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Purchase of property and equipment |
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(3 |
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Proceeds from sale of property and equipment |
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20 |
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Net cash provided by investing activities |
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4,455 |
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4,885 |
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Financing activities |
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Purchase of treasury stock |
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(981 |
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Net cash used in financing activities |
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(981 |
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Net increase (decrease) in cash and cash equivalents |
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(3,684 |
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305 |
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Cash and cash equivalents at beginning of period |
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13,100 |
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10,713 |
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Cash and cash equivalents at end of period |
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$ |
9,416 |
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$ |
11,018 |
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Supplemental disclosure of cash flow information |
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Income taxes paid |
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$ |
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$ |
130 |
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See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements.
4
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
NOTE 1 BASIS OF PREPARATION
The accompanying unaudited condensed consolidated financial statements include the accounts
of United American Healthcare Corporation, a Michigan corporation, and its wholly-owned
subsidiaries (together referred to as the Company, we, us, or our). All
significant intercompany transactions and balances have been eliminated in consolidation.
The accompanying unaudited condensed consolidated financial statements of the Company have
been prepared in conformity with U.S. generally accepted accounting principles (GAAP) and
with the instructions for Form 10-Q and Article 10 of Regulation S-X as they apply to
interim financial information. Accordingly, they do not include all of the information and
footnotes required by GAAP for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring adjustments)
considered necessary for a fair presentation of the financial position, results of
operations and cash flows have been included. The results of operations for the three and
nine months ended March 31, 2010 are not necessarily indicative of the results of
operations expected for the full fiscal year ended June 30, 2010 (fiscal 2010) or for any
other period. The accompanying interim unaudited condensed consolidated financial
statements should be read in conjunction with our annual consolidated financial statements
contained in our most recent annual report on Form 10-K filed with the Securities and
Exchange Commission (SEC) on September 24, 2009.
Reclassifications were made to the prior period balance sheet in order to conform with the
March 31, 2010 presentation.
NOTE 2 COMPREHENSIVE LOSS
The components of comprehensive loss, net of related tax, are summarized as follows (in thousands):
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Three Months Ended |
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Nine Months Ended |
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March 31, |
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March 31, |
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2010 |
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2009 |
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2010 |
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2009 |
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Net loss |
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$ |
(1,401 |
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$ |
(3,024 |
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$ |
(4,091 |
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$ |
(4,198 |
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Unrealized holding
gain (loss), net of
tax |
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29 |
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(22 |
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(20 |
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73 |
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Comprehensive loss |
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$ |
(1,372 |
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$ |
(3,046 |
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$ |
(4,111 |
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$ |
(4,125 |
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5
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
NOTE 3 NET LOSS PER COMMON SHARE
Basic net loss per share excluding dilution has been computed by dividing net loss by the weighted
average number of common shares outstanding for the period. Diluted loss per share are computed
using the treasury stock method for outstanding stock options and warrants. For the three and nine
months ended March 31, 2010 and 2009, the Company incurred a net loss. Accordingly, no common
stock equivalents for outstanding stock options and warrants have been included in the computation
of diluted loss per share for such periods as the impact would be anti-dilutive.
NOTE 4 INCOME TAXES
In accordance with GAAP, the Company periodically assesses whether valuation allowances against its
deferred tax assets are adequate based on the consideration of all available evidence. The
Companys effective tax rate for the three and nine months ended March 31, 2010 is zero percent
(0%) and differs from the statutory rate of 34%. The difference is primarily related to an increase
in the valuation allowance against the future tax benefit of the current period losses as the
Company does not believe that the realization of the benefit is more likely than not.
The Company recognizes the impact of a tax position if that position is more likely than not of
being sustained on audit, based on the technical merits of the position. The Company had no
unrecognized tax benefits as of March 31, 2010. The Company expects no significant increases or
decreases in unrecognized tax benefits due to changes in tax positions within one year of March 31,
2010. The Company has no interest or penalties relating to income taxes recognized in the condensed
consolidated statement of operations for the three and nine months ended March 31, 2010 or in the
condensed consolidated balance sheet as of March 31, 2010.
NOTE 5 TENNESSEE OPERATIONS
The Companys indirect, wholly owned subsidiary, UAHC Health Plan of Tennessee, Inc.
(UAHC-TN), was for many consecutive years a managed care organization in the
TennCare program, a State of Tennessee program that provided medical benefits to Medicaid and
working uninsured recipients. On April 22, 2008, the Company learned that UAHC-TN would
no longer be authorized to provide managed care services as a TennCare contractor when its present
TennCare contract expired on June 30, 2009. On November 1, 2008, UAHC-TNs TennCare
members transferred to other managed care organizations, after which UAHC-TN continued to perform
its remaining contractual obligations through its TennCare contract discontinuance date of June 30,
2009. However, fixed fee revenue under this contract was only earned through October 31, 2008.
Modified Risk Arrangement (MRA) of $0.3 million was received in fiscal 2010 that related to
fiscal 2009. Revenue
6
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
under the Tenncare contract represented 10% and 41% of the Companys total revenue for the nine
months ended March 31, 2010 and 2009, respectively.
On October 10, 2006, UAHC-TN entered into a contract with the Centers for Medicare & Medicaid
Services (CMS) to act as a Medicare Advantage qualified organization. The contract authorizes
UAHC-TN to serve members enrolled in both the Tennessee Medicaid and Medicare programs, commonly
referred to as dual-eligibles, specifically to offer a Special Needs Plan to its eligible members
in Shelby County, Tennessee (including the City of Memphis), and to operate a Voluntary Medicare
Prescription Drug Plan, both beginning January 1, 2007. The contract term was through December 31,
2009. The Company did not seek renewal of this contract. There has been no enrollees in UAHC-TNs
Medicare Advantage Special Needs Plan since December 31, 2009. The Company continued to process
claims for the Medicare Advantage plan through April 30, 2010.
The Company recognizes a liability for certain costs associated with an exit or disposal activity
and measures the liability initially at its fair value in the period in which the liability is
incurred. The costs recognized include employee termination benefits, lease termination and costs
to relocate the Companys facility. The following table summarizes certain exit costs resulting
from the discontinuance of the TennCare and CMS contracts (in thousands):
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Balance at |
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Expense/ |
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Balance at |
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Item |
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July 1, 2009 |
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Adj.* |
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Payments |
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March 31, 2010 |
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Workforce reduction |
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$ |
142 |
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$ |
99 |
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$ |
(94 |
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$ |
147 |
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Lease abandonment, net |
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17 |
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(9 |
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8 |
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Total |
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$ |
159 |
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$ |
99 |
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$ |
(103 |
) |
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$ |
155 |
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* |
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Amount includes forfeited employee retention benefits. |
The cumulative costs incurred through March 31, 2010 amounted to $1.1 million. These costs
are included in marketing, general and administrative expenses in our statement of operations.
Approximately $0.3 million of these costs related to the Management Companies and $0.8 million
relate to the HMO & Managed Plan. In connection with the discontinuance of the TennCare and CMS
contracts, the Company reduced its workforce, subleased its leased Tennessee facility to a third
party effective April 2009 and ending December 31, 2010, and relocated the Tennessee office. The
discontinuance of the TennCare and CMS contracts has had a material adverse impact on the Companys
operations and financial statements.
NOTE 6 STOCK OPTION PLANS
The Company recognizes the compensation cost relating to share-based payment transactions in the
Companys financial statements. That cost is measured based on the fair value of the equity
instruments issued on the date of grant. The Company recorded stock-based compensation expense of
$0.1 million for each of the three months ended March 31, 2010 and 2009 and $0.2 million and $0.3 million for the nine months ended March 31, 2010 and 2009,
respectively.
7
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
NOTE 7 FAIR VALUE
The Companys unaudited condensed consolidated balance sheets include the following financial
instruments: cash and cash equivalents, marketable securities, receivables, accounts payable,
medical claims and benefits payable, and other liabilities. The Company considers the carrying
amounts of cash and cash equivalents, receivables, other current assets and current liabilities to
approximate their fair value because of the relatively short period of time between the origination
of these instruments and their expected realization or payment.
To prioritize the inputs the Company uses in measuring fair value, the Company applies a three-tier
fair value hierarchy. These tiers include: Level 1, defined as observable inputs such as quoted
prices in active markets; Level 2, defined as inputs other than quoted prices in active markets
that are either directly or indirectly observable; and Level 3, reflects managements best estimate
of what market participants would use in pricing the asset or liability at the measurement date.
Consideration was given to the risk inherent in the valuation technique and the risk inherent in
the inputs to the mode. Determining which hierarchical level an asset or liability falls within
requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The
following table summarizes the financial instruments measured at fair value in the Condensed
Consolidated Balance Sheet as of March 31, 2010:
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Fair Value Measurements |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
Assets |
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Marketable
Securities-
long-term |
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$ |
2,370 |
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$ |
2,370 |
|
The Company classifies its short-term marketable securities as available-for-sale which are
reported at fair market value. Unrealized gains and losses, to the extent such gains and losses
are considered temporary in nature, are included in accumulated other comprehensive loss, net of
tax. At such time as the decline in fair market value and the related unrealized loss is
determined to be a result of impairment of the underlying instrument, the loss is recorded as a
charge to earnings. Fair values for marketable securities are based upon market prices.
NOTE 8
MEDICAL CLAIMS LIABILITY AND EXPENSE (REDUCTION)
The Company recorded a liability of $0.4 million and $2.2 million at March 31, 2010 and June 30,
2009, respectively, for unpaid medical claims incurred by enrollees. The medical claims liability
as of March 31, 2010 represents the remaining liability for services that have been performed by
providers for the Companys Medicare Advantage members prior to December 31, 2009. Included in the
expense related to the period are medical claims reported to UAHC-TN as well as claims that have
been incurred but not yet reported to it, or IBNR. The IBNR component is primarily based on medical cost estimates from historical
8
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
data provided by CMS and emerging medical claims experience together with current factors. The IBNR
reserve estimated at March 31, 2010 and June 30, 2009, was derived by an independent actuarial
analysis. Each quarter, the Company re-examines the previously established medical claims
liability estimates based on actual claim submissions and other relevant changes in facts and
circumstances. As the liability estimates recorded in prior periods become more exact, the Company
will increase or decrease the amount of the estimates, and include the changes in medical expenses
in the period in which the change is identified. The ultimate settlement of medical claims may
vary from the estimated amounts reported and the difference could be material. The Company
adjusted the medical expense for the three months ended March 31, 2010 based on the actuarial
report, which resulted in a reduction of expense of $0.3 million.
NOTE 9 ACCRUED COMPENSATION AND RELATED BENEFITS
The Company has a retention and severance agreement with the Companys Chief Executive Officer,
William C. Brooks, to incentivize his continued service to the Company. This agreement was dated
and effective as of October 31, 2008, the date on which the agreement was approved by the Companys
board of directors. As of March 31, 2010, the Company had accrued $0.1 million related to such
executive retention and severance agreement. These amounts have been reflected in exit costs
disclosed in Note 5 above. The Company has a potential remaining liability of $0.1 million related
to such agreements.
NOTE 10 LEGAL SETTLEMENT
The Company was a defendant with others in a lawsuit that commenced in February 2005 in the Circuit
Court for the 30th Judicial Circuit, in the County of Ingham, Michigan, Case No. 05127CK, entitled
Provider Creditors Committee on behalf of Michigan Health Maintenance Organizations Plans, Inc. v.
United American Healthcare Corporation and others, et al. On September 22, 2009, the Company
settled this litigation for $3.3 million and all claims have been dismissed against the Company and
the individuals. In the fourth quarter of fiscal 2009, the Company recorded a provision for this
legal settlement of $3.1 million, which was net of the insurance reimbursement of $0.2 million in
the fiscal year 2009 statement of operations. As of December 31, 2009, the related liability of
$3.3 million was paid in full. The Company recovered $0.2 million through insurance in January
2010.
9
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
NOTE 11 UNAUDITED SEGMENT FINANCIAL INFORMATION
Summarized financial information for the Companys principal operations, as of and for the three
and nine months ended March 31, 2010 and 2009, is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Management |
|
|
HMO & |
|
|
Corporate & |
|
|
Consolidated |
|
March 31, 2010 |
|
Companies (1) |
|
|
Managed Plan (2) |
|
|
Eliminations |
|
|
Company |
|
|
Revenue external customers |
|
$ |
|
|
|
$ |
14 |
|
|
$ |
|
|
|
$ |
14 |
|
Revenue intersegment |
|
|
3,400 |
|
|
|
|
|
|
|
(3,400 |
) |
|
|
|
|
|
|
|
Total revenue |
|
$ |
3,400 |
|
|
$ |
14 |
|
|
$ |
(3,400 |
) |
|
$ |
14 |
|
|
|
|
Net earnings (loss) |
|
$ |
1,696 |
|
|
$ |
(3,097 |
) |
|
$ |
|
|
|
$ |
(1,401 |
) |
Depreciation and amortization |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
40 |
|
As of March 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
35,800 |
|
|
$ |
6,180 |
|
|
$ |
(29,317 |
) |
|
$ |
12,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Management |
|
|
HMO & |
|
|
Corporate & |
|
|
Consolidated |
|
March 31, 2010 |
|
Companies (1) |
|
|
Managed Plan (2) |
|
|
Eliminations |
|
|
Company |
|
|
Revenue external customers |
|
$ |
|
|
|
$ |
3,475 |
|
|
$ |
|
|
|
$ |
3,475 |
|
Revenue intersegment |
|
|
3,743 |
|
|
|
|
|
|
|
(3,743 |
) |
|
|
|
|
|
|
|
Total revenue |
|
$ |
3,743 |
|
|
$ |
3,475 |
|
|
$ |
(3,743 |
) |
|
$ |
3,475 |
|
|
|
|
Net loss |
|
$ |
(1,081 |
) |
|
$ |
(3,010 |
) |
|
$ |
|
|
|
$ |
(4,091 |
) |
Depreciation and amortization |
|
|
120 |
|
|
|
|
|
|
|
|
|
|
|
120 |
|
As of March 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
35,800 |
|
|
$ |
6,180 |
|
|
$ |
(29,317 |
) |
|
$ |
12,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Management |
|
|
HMO & |
|
|
Corporate & |
|
|
Consolidated |
|
March 31, 2009 |
|
Companies (1) |
|
|
Managed Plan (2) |
|
|
Eliminations |
|
|
Company |
|
|
Revenue external customers |
|
$ |
|
|
|
$ |
2,612 |
|
|
$ |
|
|
|
$ |
2,612 |
|
Revenue intersegment |
|
|
3,618 |
|
|
|
|
|
|
|
(3,618 |
) |
|
|
|
|
|
|
|
Total revenue |
|
$ |
3,618 |
|
|
$ |
2,612 |
|
|
$ |
(3,618 |
) |
|
$ |
2,612 |
|
|
|
|
Net earnings (loss) |
|
$ |
678 |
|
|
$ |
(3,702 |
) |
|
$ |
|
|
|
$ |
(3,024 |
) |
Depreciation and amortization |
|
|
32 |
|
|
|
|
|
|
|
|
|
|
|
32 |
|
As of March 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
54,116 |
|
|
$ |
14,862 |
|
|
$ |
(45,024 |
) |
|
$ |
23,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Management |
|
|
HMO & |
|
|
Corporate & |
|
|
Consolidated |
|
March 31, 2009 |
|
Companies (1) |
|
|
Managed Plan (2) |
|
|
Eliminations |
|
|
Company |
|
|
Revenue external customers |
|
$ |
|
|
|
$ |
13,409 |
|
|
$ |
|
|
|
$ |
13,409 |
|
Revenue intersegment |
|
|
10,105 |
|
|
|
|
|
|
|
(10,105 |
) |
|
|
|
|
|
|
|
Total revenue |
|
$ |
10,105 |
|
|
$ |
13,409 |
|
|
$ |
(10,105 |
) |
|
$ |
13,409 |
|
|
|
|
Net loss |
|
$ |
(27 |
) |
|
$ |
(4,171 |
) |
|
$ |
|
|
|
$ |
(4,198 |
) |
Depreciation and amortization |
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
149 |
|
Purchase of equipment |
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
3 |
|
As of March 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
$ |
54,116 |
|
|
$ |
14,862 |
|
|
$ |
(45,024 |
) |
|
$ |
23,954 |
|
|
|
|
|
|
|
(1) |
|
Management Companies: United American Healthcare Corporation and United American of
Tennessee, Inc. |
|
(2) |
|
HMO & Managed Plan: UAHC Health Plan of Tennessee, Inc. |
10
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
NOTE 12 RECENTLY ENACTED ACCOUNTING PRONOUNCEMENTS
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards
Board (FASB) or other standard setting bodies that are adopted by the Company as of the effective
dates. Unless otherwise discussed, Management believes that the impact of recently issued
standards that are not yet effective will not have a material impact on the Companys financial
position or results of operations upon adoption.
NOTE 13 COMMITMENTS & CONTINGENCIES
Standstill Agreement
On March 19, 2010, the Company and St. George Investments, LLC (St. George), a 23.3% beneficial
owner of the Company, entered into a Voting and Standstill Agreement (the Standstill Agreement).
Under the Standstill Agreement, St. George has agreed to, among other things,
|
|
|
Withdraw its slate of nominees for election to the Board and to vote in favor of the
candidates nominated by the Board for election at the Companys upcoming annual meeting.
St. George also agreed for a minimum period of 18 months to customary standstill
provisions; |
|
|
|
|
Vote all shares it currently beneficially owns or thereafter may acquire
(collectively Shares) as recommended by a majority of the
Board and it granted an
irrevocable proxy to effectuate the voting agreement (the
Voting Agreement); and |
|
|
|
|
Not acquire beneficial ownership of shares of common stock
that would represent more than 35% of the issued and outstanding common stock of the
Company (excluding shares acquired upon conversion of any preferred stock issued to St.
George pursuant to the Capital Call (as defined below)). |
The Standstill Obligations and the Voting Agreement continue until March 31, 2012, unless earlier
terminated if the Put (as defined below) is exercised or if there is an event of default (as
defined in the Standstill Agreement). The Put can be exercised beginning on October 1, 2011 and
expires March 31, 2012. However, as of March 19, 2010, the Put can be accelerated at any time
immediately upon the occurrence of certain events of default, which are: a breach of the Standstill
Agreement that is not cured within 10 days of receipt of notice of such breach; the insolvency of
or a bankruptcy petition filed by the Company; a judgment against the Company in excess of $2
million, which is not stayed or discharged within 60 days and which results in the Company having
insufficient cash on hand to satisfy the put obligations; the Companys delinquency in its periodic
reporting obligations under Section 13 of the Exchange Act; the Companys common shares are
delisted from Nasdaq or fail to be quoted on the OTC Bulletin Board;
in the event of an exercise of the
Companys right to require St. George Investments, LLC to invest $600,000 in the Company (the
Capital Call),
11
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
an event of default occurs under the certificate of designations that govern the preferred shares
issued pursuant to the Capital Call.
The Company has the right to purchase all of the Shares (the Call) and St. George has the right
to require the Company to purchase some or all of the Shares (the Put). The Put price is $1.26.
The Company may exercise the Call at $1.14 per share, the Call is exercised on or prior to June
30, 2011. If the Call occurs between July 1, 2011 and September 30, 2011, the Call price is the
same as the Put price. The Call expires upon the earliest of September 30, 2011 and a Triggering
Event which is defined to mean the Companys execution of a letter of intent for a business
combination, the Companys execution of definitive documents for a business combination and the
Companys public announcement of a business combination. A business combination would include an
acquisition of the Company or by the Company.
St. George has granted to the Company the right, commencing May 1, 2010, to require St. George to
invest $600,000 in the Company (the Capital Call). The Capital Call expires upon the earlier of
July 1, 2011 and the Companys filing of a registration statement for St. Georges shares. If the
Capital Call is exercised, St. George would be issued that number of shares of a newly designated
series of non-voting convertible preferred stock (the Preferred Stock) based on the dollar volume
weighted average closing price of the Companys common stock for the 30 calendar days prior to the
date of the issuance of the shares of Preferred Stock; however, if there is a Triggering Event, the
calculation would be based on the 30 calendar pays prior to the Triggering Event. The Preferred
Stock would be convertible at any time at the option of St. George into shares of the Companys
common stock at a ratio of 1:1, with such conversion ratio subject to adjustment in the event of
certain stock splits or dividends or in the event of a business combination or similar transaction.
The Preferred Stock would have a 3% per annum dividend which, at the option of the Company, would
be payable in cash or in additional shares of Preferred Stock. The common shares acquired upon
conversion of the Preferred Stock is subject to the Companys Call right, and the holder of the
Preferred Stock has a Put right, on the same terms and conditions as are applicable to the shares
of common stock beneficially owned by St. George. In no event would the aggregate number of shares
of common stock issued to St. George upon conversion of the Preferred Stock exceed 20% of the
outstanding shares of common stock prior to such issuance, unless the Company obtains shareholder
approval if required by the Nasdaq Rules. The terms of the Preferred Stock are set forth in the
Certificate of Designation which is an exhibit to the Standstill Agreement. The Certificate of
Designation would be filed by the Company concurrently with exercise of the Capital Call.
The Company has agreed to maintain certain reserves of its unrestricted cash on its balance sheet,
initially equal to 20% of the Companys pro forma estimate of its 2010 fiscal year-end
shareholders equity. The Companys pro forma estimate of shareholders equity as of 2010 fiscal
year end is approximately $11 million, which would require a corresponding reserve of approximately
$2.2 million.
12
United American Healthcare Corporation and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements
As additional restricted cash becomes unrestricted, the Company must reserve additional amounts which,
together with the prior reserves, equal the total Put obligation. St. George currently owns 23.3%
of the Company, which corresponds to a minimum reserve of approximately $2.4 million. The
Standstill Agreement permits St. George to own up to 35% of the Companys issued and outstanding
common shares, which correspond to a maximum reserve of $3.6 million.
Additionally, if the Capital Call was exercised (either at the Companys option or due to a
Triggering Event), the Company would have to reserve cash to satisfy the put on the preferred
shares issued pursuant to the Capital Call, in addition to the amounts reserved for the Companys
put obligations on the common stock. The reserve for the put on the preferred shares cannot be
calculated until the Capital Call is exercised because although the price of the put on the
preferred shares is set at $1.26, the number of preferred shares issued pursuant to the Capital
Call is based upon the dollar volume weighted average closing price of the Companys common stock
for the 30 calendar days prior to the date of the issuance of the preferred shares, or if there a
Triggering Event, the calculation would be based on the 30 calendar days prior to the Triggering
Event.
Lawsuit
On March 31, 2010, Strategic Turnaround Equity Partners, L.P. (Cayman) (STEP) filed suit against
the Company, Thomas Goss (Chairman of the Companys Board), John Fife and Fife affiliates (Fife)
in the United States District Court for the Eastern District of Michigan, Case No. 10-cv-11305,
seeking an injunction against a proxy solicitation by the Company, voting of Fife shares, and
implementation of a Voting and Standstill Agreement dated March 19, 2010 between the Company and
St. George Investments, LLC, one of the Fife affiliates. STEP alleged that the Companys
preliminary proxy materials for the 2010 annual meeting of shareholders violated Section 14(a) of
the Securities Exchange Act of 1934, that Fife was prohibited from voting shares by virtue of a
provision in the Companys Articles of Incorporation and that the Voting and Standstill Agreement
violated the Companys Articles of Incorporation and Michigan law. On April 7, 2010, STEP sought an order
directing the holding of the Companys annual meeting on April 23, 2010. On April 9, 2010, the
district court denied STEPs motion relating to the April 23, 2010 meeting. On April 28, 2010, the
Company filed a motion to dismiss STEPs lawsuit. STEP has since filed a motion for summary
judgment. A hearing has been scheduled for June 15, 2010. The potential loss, if any, for the Company relating to this lawsuit is not
determinable at this time.
NOTE 14 SUBSEQUENT EVENT
The Company has performed a review of events subsequent to the balance sheet date.
13
|
|
|
Item 2. |
|
Managements Discussion and Analysis of Financial Condition and Results of
Operations. |
Forward-Looking Statements
The following Managements Discussion and Analysis of Financial Condition and Results of Operations
and other sections of this report contains various forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements represent our expectations or
beliefs concerning future events, including statements regarding future plans and strategy for our
business, earnings and the sufficiency of our cash balances and cash generated from operating,
investing, and financing activities for our future liquidity and capital resource needs. We caution
that although forward-looking statements reflect our good faith beliefs and reasonable judgment
based upon current information, these statements are qualified by important factors that could
cause actual results to differ materially from those in the forward-looking statements, because of
risks, uncertainties, and factors including, but not limited, to: the ongoing impact of the U.S.
recession, the termination of the TennCare contract, the wind-down of the CMS contract, the review
of strategic alternatives, the ongoing impact of the global credit and financial crisis and other
changes in general economic conditions, and adverse changes in the health care industry. Other
risks and uncertainties are detailed from time to time in reports filed with the SEC, and in
particular those set forth under Risk Factors in our Annual Report on Form 10-K for fiscal 2009.
Given such uncertainties, you should not place undue reliance on any such forward-looking
statements. Except as required by law, we may not update these forward-looking statements, even if
new information becomes available in the future.
Overview
We intend for the following discussion and analysis regarding the Companys results of operations,
financial position and liquidity to provide you with information that will assist you in
understanding our condensed consolidated financial statements. This discussion and analysis should
be read in conjunction with our condensed consolidated financial statements and related notes
contained in this quarterly report.
The Company provided comprehensive management and consulting services to UAHC Health Plan of
Tennessee, Inc. (UAHC-TN), a managed care organization (MCO) which is a wholly-owned,
second-tier subsidiary of United American Healthcare Corporation. From November 1993 to June 30,
2009, UAHC-TN had a contract with the State of Tennessee, Bureau of TennCare (TennCare), to
arrange for the financing and delivery of healthcare services on a capitated basis to eligible
Medicaid beneficiaries and non-Medicaid individuals who lack access to private or employer
sponsored health insurance or to another government health plan.
On November 1, 2008, UAHC-TNs TennCare members transferred to other managed care organizations,
after which UAHC-TN continued to perform its remaining contractual obligations through its TennCare
contract discontinuance date of June 30, 2009. However,
14
fixed fee revenue under this contract was only earned through October 31, 2008. Modified Risk
Arrangement (MRA) of $0.3 million was received in fiscal 2010 related to fiscal 2009. Revenue
under the TennCare contract represented 0% of the Companys total revenue for the three months
ended March 31, 2010 and 2009, and 10% and 41% for the nine months ended March 31, 2010 and 2009,
respectively. The discontinuance of the TennCare contract has had a material adverse impact on the
Companys operations and financial statements. As of March 31, 2010, there were no TennCare
enrollees in UAHC-TN.
On October 10, 2006, UAHC-TN entered into a contract with the Centers for Medicare & Medicaid
Services (CMS) to act as a Medicare Advantage qualified organization. The contract authorizes
UAHC-TN to serve members enrolled in both the Tennessee Medicaid and Medicare programs, commonly
referred to as dual-eligibles, specifically to offer a Special Needs Plan to its eligible members
in Shelby County, Tennessee (including the City of Memphis), and to operate a Voluntary Medicare
Prescription Drug Plan, both beginning January 1, 2007. The contract term was through December 31,
2009. The Company did not seek renewal of this contract. As of March 31, 2010, there were no
members in the UAHCs Medicare Advantage Special Needs Plan (our MA-SNP).
The total
number of employees of the Company at March 31, 2010 was 7 compared to 25 at March 31,
2009. The discontinuance of the TennCare and the CMS contracts has resulted in a substantial
decrease in the total number of employees.
Due to the discontinuance of the TennCare and the CMS contracts, our board of directors and
management have been engaged in a review of a variety of long-term strategic alternatives with the
objective of pursuing a strategic alternative that satisfies three primary objectives: providing
significant revenues; providing immediate positive EBITDA; and having long-term growth
opportunities. During this review, all feasible options are being considered, including pursuing a
joint venture or other strategic partnership, completing a strategic acquisition or merger, or
liquidating our assets. Further, it is important to note that the exploration of strategic
alternatives includes all industries that satisfy the three primary objectives, not solely the
healthcare industry.
Since 2005, the Company had been a defendant in a lawsuit as described in Note 10 to the unaudited
condensed consolidated financial statements. In September 2009, the lawsuit was settled and paid
for $3.3 million. The settlement is offset by an insurance recovery of $0.2 million.
Operating Results
For the Three Months Ended March 31, 2010 Compared
to the Three Months Ended March 31, 2009
Total revenues decreased to $0.01 million for the three months ended March 31, 2010, compared to
$2.6 million for the three months ended March 31, 2009. The decrease was principally due to the
discontinuance of its managed care services as a TennCare contractor and as a CMS Medicare
Advantage provider as described in the overview to this section and in Note 5 to our Unaudited
Condensed Consolidated Financial Statements.
15
There were no fixed or variable administrative fees for the three months ended March 31, 2010 and
2009.
Our MA-SNP medical premiums revenues were $0.01 for the three months ended March 31, 2010 compared
to $2.6 million for the three months ended March 31, 2009. The decrease is attributable to the
discontinuance of the CMS contract.
Total expenses decreased $4.3 million (75%) to $1.4 million for the three months ended March 31,
2010 as compared to $5.8 million for the three months ended March 31, 2009. The decrease in total
expenses was primarily the result of a decrease in marketing, general and administrative expenses
and medical expenses.
Medical expenses for our MA-SNP decreased $2.9 million to ($0.3) million for the three months ended
March 31, 2010 compared to $2.7 million for the three months ended March 31, 2009. The decrease in
medical expenses is primarily attributable to the discontinuance of
the CMS contract. See Note 8 to
our Unaudited Condensed Consolidated Financial Statements for additional information on medical
expenses.
Marketing,
general and administrative expenses decreased $1.4 million (46%) to $1.7 million for the
three months ended March 31, 2010 from $3.1 million for the three months ended March 31, 2009. The
decrease was principally due to reductions in labor costs, adminstrative costs and professional
services expenses.
There was no income tax expense for the three months ended March 31, 2010 compared to ($0.04)
million for the three months ended March 31, 2009. The Companys effective tax rate for the three
months ended March 31, 2010 of 0% differs from the statutory rate of 34%. This difference is
primarily related to an increase in the valuation allowance against the future tax benefit of the
current period losses as the Company does not believe that the realization of the benefit is more
likely than not.
Depreciation and amortization expense was $0.04 million for the three months ended March 31, 2010,
a slight increase from $0.03 million for the three months ended March 31, 2009.
Loss before income taxes was $1.4 million for the quarter ended March 31, 2010 compared to loss
before income taxes of $3.1 million for the quarter ended March 31, 2009.
Net loss was $1.4 million, or ($0.17) per basic share, for the quarter ended March 31, 2010,
compared to net loss of $3.0 million, or $(0.35) per basic share, for the quarter ended March 31,
2009.
For the Nine Months Ended March 31, 2010 Compared to
Nine Months Ended March 31, 2009
Total revenues decreased $9.9 million (74%) to $3.5 million for the nine months ended March 31,
2010, compared to $13.4 million for the nine months ended March 31, 2009. The decrease was
principally due to the discontinuance of its managed care services as a TennCare contractor and the
discontinuance of the CMS contract, as described in the overview to this section and in Note 5 to
our Unaudited Condensed Consolidated Financial Statements.
16
The fixed administrative fees decreased by $4.6 million to $0 for the nine months ended March 31,
2010, compared to $4.6 million for the nine months ended March 31, 2009. The decrease is due to
the discontinuance of its managed care services as a TennCare contractor.
Variable administrative fees resulting from MRA revenue were $0.3 million for the nine months ended
March 31, 2010, compared to $0.9 million for the nine months ended March 31, 2009. The $0.3 million
received in fiscal 2010 related to fiscal 2009. The $0.9 million MRA revenue received in fiscal
2009 relates to fiscal 2008.
Our MA-SNP medical premiums revenues were $3.1 million for the nine months ended March 31, 2010
compared to $7.9 million for the nine months ended March 31, 2009. The decrease of $4.7 million is
attributable to the discontinuance of the CMS contract.
Our MA-SNP per member per month premium rate for the nine months ended March 31, 2010 was $1,123
compared to $1,153 for the nine months ended March 31, 2009.
Total expenses decreased $10.5 million to $7.7 million for the nine months ended March 31, 2010 as
compared to $18.2 million for the nine months ended March 31, 2009. The decrease is primarily due
to a decrease in marketing, general and administrative expenses and medical expenses.
Medical expenses for our MA-SNP were $2.8 million for the nine months ended March 31, 2010,
compared to $7.4 million for the nine months ended March 31, 2009. The decrease in medical
expenses is attributable to the discontinuance of the MA-SNP plan partially offset by an increase
in outpatient claims. The ratio of such medical expenses to medical premiums revenues for our MA
-SNP, expressed as a percentage the medical loss ratio was 89.5% for the nine months ended March
31, 2010.
Marketing, general and administrative expenses decreased $5.6 million (54%) to $4.8 million for the
nine months ended March 31, 2010 from $10.4 million for the nine months ended March 31, 2009. The
decrease was principally due to reductions in labor costs, adminstrative costs and professional
services expenses resulting from the discontinuance of the TennCare contract and the CMS contract.
Depreciation and amortization expense was $0.1 million for the nine months ended March 31, 2010 and
2009.
There was no income tax expense for the nine months ended March 31, 2010 compared to income tax
expense of $0.04 million for the nine months ended March 31, 2009. The Companys effective tax
rate for the nine months ended March 31, 2010 of 0% differs from the statutory rate of 34%. This
difference is primarily related to an increase in the valuation allowance against the future tax
benefit of the current period losses as the Company does not believe that the realization of the
benefit is more likely than not.
Loss before income taxes was $4.1 million for the nine months ended March 31, 2010 compared to loss
before income taxes of $4.2 million for the nine months ended March 31, 2009.
Net loss was $4.1 million, or ($0.50) per basic share, for the nine months ended March 31, 2010,
compared to net loss of $4.2 million, or ($0.48) per basic share, for the nine months
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ended March 31, 2009. The decrease is primarily due to the decrease in overall revenue resulting
from the discontinuance of the TennCare contract and the CMS contract.
Liquidity and Capital Resources
Capital resources, which for us is primarily cash from operations, are required to maintain our
current operations and other commitments and contingencies. Capital resources may also be used for
strategic alternatives which may include merger and/or acquisitions. We have no indebtedness as of
March 31, 2010.
As described in the overview to this section and Note 5 to our Unaudited Condensed Consolidated
Financial Statements in Part I, Item 1, the Company ceased providing managed care services as a
TennCare contractor on June 30, 2009. The discontinuance of the TennCare contract has had a
material adverse impact on the Companys operations and financial statments. In addition, the CMS
contract expired as of December 31, 2009. The Company did not seek renewal of this contract. The
discontinuance of the CMS contract has had and will continue to have a material adverse impact on
the Companys operations and financial statements.
At March 31, 2010, the Company had (i) cash and cash equivalents and short-term marketable
securities of $9.4 million, compared to $17.6 million at June 30, 2009; (ii) working capital of
$8.4 million, compared to working capital of $12.2 million at June 30, 2009; and (iii) a current
assets-to-current liabilities ratio of 6.94-to-1, compared to 2.72-to-1 at June 30, 2009.
The Companys ability to maintain adequate amounts of cash to meet its future cash needs depends on
a number of factors, particularly including its ability to control administrative costs related to
the runoff period of the CMS contract, and controlling corporate overhead costs. On the basis of
the matters discussed above, management believes at this time that the Company has the sufficient
cash to adequately support its financial requirements through the next twelve months, and maintain
minimum statutory net worth requirements of UAHC-TN.
Net cash used in operating activities of $8.2 million in the nine months ended March 31, 2010 was
primarily due to a net loss of $4.1 million and the $3.1 million net payment of the litigation
settlement. (See Note 9 to our Unaudited Condensed Consolidated Financial Statements.) Medical
claims payable decreased by $1.8 million at March 31, 2010 compared to June 30, 2009, primarily due
to discontinuance of the CMS contract. Accounts payable and accrued expenses decreased by $0.5
million at March 31, 2010 compared to June 30, 2009, principally due to the payment of legal fees
related to litigation.
Net cash provided by investing activities of $4.5 million for the nine months ended March 31, 2010
was primarily due to cash proceeds from the sale of marketable securities of $6.9 million which was
partially offset by cash purchases of marketable securities of $2.4 million.
Decrease in cash was $3.7 million for the nine months ended March 31, 2010, compared to increase in
cash of $0.3 million for the comparable period a year earlier.
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The Companys subsidiary, UAHC-TN, had a required minimum net worth requirement using statutory
accounting practices of $1.5 million at March 31, 2010. UAHC-TN had excess statutory net worth of
approximately $4.0 million at March 31, 2010.
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Item 4T. Controls and Procedures |
Under the supervision and with the participation of our management, including our principal
executive and principal financial officers, we have evaluated the effectiveness of our disclosure
controls and procedures as of March 31, 2010. Based upon that evaluation, our principal executive
and principal financial officers have concluded that our disclosure controls and procedures were
effective as of the end of the period covered by this report to provide reasonable assurance that
information required to be disclosed by the Company in reports that it files or submits under the
Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized
and reported within the time periods specified in the SECs rules and forms and is accumulated and
communicated to our management, including our principal executive and principal financial officers,
as appropriate to allow timely decisions regarding required disclosure.
There was no change in our internal control over financial reporting during our third quarter ended
March 31, 2010 that has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.
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Part II. OTHER INFORMATION
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Item 1. Legal Proceedings |
On March 31, 2010, Strategic Turnaround Equity Partners, L.P. (Cayman) (STEP) filed suit against
the Company, Thomas Goss (Chairman of the Companys Board), John Fife and Fife affiliates (Fife)
in the United States District Court for the Eastern District of Michigan, Case No. 10-cv-11305,
seeking an injunction against a proxy solicitation by the Company, voting of Fife shares, and
implementation of a Voting and Standstill Agreement dated March 19, 2010 between the Company and
St. George Investments, LLC, one of the Fife affiliates. STEP alleged that the Companys
preliminary proxy materials for the 2010 annual meeting of shareholders violated Section 14(a) of
the Securities Exchange Act of 1934, that Fife was prohibited from voting shares by virtue of a
provision in the Companys Articles of Incorporation and that the Voting and Standstill Agreement
violated the Articles of Incorporation and Michigan law. On April 7, 2010, STEP sought an order
directing the holding of the Companys annual meeting on April 23, 2010. On April 9, 2010, the
district court denied STEPs motion relating to the April 23 meeting. On April 28, 2010, the
Company filed a motion to dismiss STEPs lawsuit. STEP has since filed a motion for summary
judgment. A hearing has been scheduled for June 15, 2010.
There are no material changes to the risk factors previously disclosed in Item 1A. Risk Factors
in our Annual Report on Form 10-K for the fiscal year ended June 30, 2009 and otherwise
subsequently disclosed in our reports filed with the SEC. You should carefully consider the risks
and uncertainties we describe in such report and in other reports filed or furnished thereafter
with the SEC before deciding to invest in or retain shares of our common stock. If any of these
risks or uncertainties actually occurs, our business, financial condition, operating results or
liquidity could be materially and adversely affected.
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Item 5. Other Information |
On November 12, 2009, we received a letter from The NASDAQ Stock Market advising that, for the
previous 30 consecutive business days, the closing bid price of our common stock was below the
minimum $1.00 per share requirement for continued listing on The NASDAQ Capital Market. We had a
grace period of 180 calendar days, or until May 11, 2010, in which to regain compliance. On
January 25, 2010, we regained compliance as the bid price of our common stock closed at $1.00 per
share or more for a minimum of 10 consecutive business days.
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10.1
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Employment Agreement, dated January 16, 2010, by and between the
Company and William L. Dennis, incorporated herein by reference to
Exhibit 10.1 to the Companys Current Report on Form 8-K filed
January 21, 2010. |
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31.1*
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Certifications of Chief Executive Officer pursuant to Rule
13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002. |
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31.2*
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Certifications of Chief Financial Officer pursuant to Rule
13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002. |
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32.1*
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Certifications of Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002. |
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
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United American Healthcare Corporation
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Dated: May 17, 2010 |
By: |
/s/ William C. Brooks
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William C. Brooks |
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President & Chief Executive Officer
(Principal Executive Officer) |
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Dated: May 17, 2010 |
By: |
/s/ William L. Dennis
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William L. Dennis |
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Chief Financial Officer & Treasurer
(Principal Financial Officer) |
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